Recently, we have been seeing a lot of news regarding the regulation of the cryptocurrency but can cryptocurrency be truly regulated or essentially wiped out of its existence? I don’t think so. Cryptocurrency is designed to be decentralized, which means there will not be any central authority which could have total control over it ( in contrast to your day to day currencies issued by the government ). There isn’t any central location that the government could simply shutdown ( unless every single country in the world agree to crackdown all crypto-related entities and business at once which is highly unlikely ) Even if a country decided to ban all crypto related activity (like what China did), all it takes is just a VPN and you will be able to continue transacting on other international platforms.
Besides, tracking a specific crypto wallet although is not impossible, would be very difficult when it comes to connecting a particular address to an identity in the real world. Not to mention a simple VPN or a proxy server could be used to obfuscate the location of an individual.
One of the ways that governments will use in their attempt to regulate cryptocurrency is to make the process of converting cryptocurrency to fiat currency extremely difficult. But this would probably require a global endeavor. If a particular country is banning the conversion of cryptocurrency into the country’s currency, its citizens could simply bypass the restriction by converting their cryptocurrencies into other fiat currencies and then back to their home currency. It will be troublesome, but not impossible. In the short term, this could be some unpleasant experience but in the long term cashing out might not be a problem at all. If we were to reach a point where all major merchants start accepting transactions in cryptocurrencies and you could essentially purchase almost everything with crypto, why would you need traditional currencies anymore? 😉
That is the ultimate revolution that we all dream of!
Thanks for the elaborated answer!